Golden Agri-resources Ltd · SGX:E5H
Golden Agri-resources — 9M 2013 Earnings Presentation
28 slides from Golden Agri-resources's earnings presentation, Nov 12, 2013
Slide 1: Interim Performance Presentation
Interim Performance Presentation YTD Sep 2013 : nine-month period ended 30th September 2013 12 November 2013 0
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Golden Agri-Resources Ltd. (“GAR” or “Company”) for informational purposes, and may contain projections and forward looking statements that reflect the Company’s current views with respect to future events and financial performance. These views are b
Slide 3: Table of Contents
Table of Contents Section 1 Executive Summary 3 Section 2 Financial Highlights 5 Section 3 Plantation Highlights 11 Section 4 Downstream Highlights 16 Section 5 Strategy and Outlook 19 Section 6 Appendix 24 2
Slide 4: Executive Summary
Agar ZF agribusiness and food Section 1 Executive Summary
Slide 5: Executive Summary
Executive Summary Revenue for YTD Sep 2013 grew with expanded downstream operations, despite weaker CPO prices Price (US$/MT) EBITDA (US$ million) Output (‘000 MT) 800 2,200 • YTD Sep 2013 vs YTD Sep 2012 results 2,000 700 Revenue $4,683 mn 3% 1,800 EBITDA $462 mn 28% 600 1,600 Net Profit1 $188 mn 4
Slide 6: Financial Highlights
Section 2 Financial Highlights
Slide 7: Financial Performance – YTD Sep 2013
Financial Performance – YTD Sep 2013 US$ million YTD Sep 2013 YTD Sep 2012 Change Revenue 4,683 4,533 3% Gross Profit 938 1,250 -25% EBITDA 462 643 -28% Interest on borrowings -73 -54 35% Depreciation and amortisation -99 -84 18% Foreign exchange loss, net -15 -12 26% Net Profit attributable to owne
Slide 8: Financial Performance – 3Q 2013
Financial Performance – 3Q 2013 US$ million 3Q 2013 3Q 2012 YoY 2Q 2013 QoQ Change Change Revenue 1,571 1,672 -6% 1,682 -7% Gross Profit 277 398 -30% 304 -9% EBITDA 111 190 -42% 140 -21% Interest on borrowings -26 -21 28% -24 12% Depreciation and amortisation -35 -30 18% -33 6% Foreign exchange loss
Slide 9: Segmental Results
Segmental Results US$ million Indonesia Operations China Operations YTD Sep 2013 YTD Sep 2012 Change YTD Sep 2013YTD Sep 2012 Change Revenue 3,725 3,583 4% 959 950 1% Gross Profit 884 1,227 -28% 54 23 140% Gross Profit Margin 24% 34% -10% 6% 2% 4% EBITDA 438 648 -32% 24 -5 n.m. EBITDA Margin 12% 18%
Slide 10: Financial Position
Financial Position Strong balance sheet position with low gearing (in US$ million) 30-Sep-13 31-Dec-12 Change Total Assets 13,863 13,286 4% Cash and Short-Term Investments 699 685 2% Trade Receivables and Inventories 1,058 1,240 -15% Fixed Assets1 10,174 9,907 3% Total Liabilities 5,122 4,668 10% In
Slide 11: Dividend
Dividend The Board approves to distribute interim dividend of 0.585 Singapore cents per share, 30% of our underlying profit for YTD Sep 2013 Interim 2009 2010 2011 2012 2013 Cash Dividend Dividend per share (in S$ cents) 0.495 0.770 1.840 1.190 0.585 Total Dividend (in S$ million) 60.09 93.47 223.35
Slide 12: Plantation Highlights
Section 3 Plantation Highlights
Slide 13: Plantation Area
Plantation Area GAR is the largest Indonesian plantation company with integrated operations (in ha) 30 Sep 30 Sep 30 Sep 2013/2012 31 Dec 2013 2012 % increase 2012 Planted Area 467,014 459,502 1.6% 463,426 Nucleus 368,476 363,586 1.3% 366,914 Plasma 98,538 95,916 2.7% 96,512 Mature Area 431,612 418,
Slide 14: Total Planted Area by Age Profile
Total Planted Area by Age Profile GAR’s long-term growth is supported by favourable age profile of planted area underpinned by large immature and young plantations Sep 2013 Sep 2012 4% 8% 4% 9% 20,324 21% 19,401 23% 17% 35,402 41,365 94,851 20% 107,369 79,597 91,953 224,322 211,932 46% 48% Notes: 1.
Slide 15: Production Performance
Production Performance Strong quarter-on-quarter improvement in production in line with seasonality YTD YTD Sep 2013 Sep 2012 Change 3Q 2013 2Q 2013 Change FFB Production (‘000 tonnes) 6,410 6,869 -7% 2,293 1,967 17% Nucleus 4,991 5,238 -5% 1,768 1,536 15% Plasma 1,419 1,631 -13% 525 431 22% FFB Yie
Slide 16: Holistic Approach to Sustainability
Holistic Approach to Sustainability Certification Updates • RSPO: To date, 155,045 ha of plantations including smallholder plantations of 21,418 ha, 12 mills and one refinery have received Roundtable on Sustainable Palm Oil (RSPO) certification. • ISCC: To date, 187,166 ha of plantations including s
Slide 17: Downstream Highlights
Section 4 Downstream Highlights
Slide 18: Expanding Downstream Capacity in Indonesia
Expanding Downstream Capacity in Indonesia Expanding Indonesia downstream production base for global exports • YTD Sep 2013 sales volume of refined products grew by 58% year-on-year • Refining capacity expansion supported by: • Growing palm products output from our plantations • Export tax scheme fa
Slide 19: Strengthening Downstream Business in China
Strengthening Downstream Business in China Strengthening of the management team showing positive impact in China as one of the largest and fastest growing edible oils consumers GAR strategically strengthen its presence in China by: • Developing distribution channels to enter new areas in China • Ach
Slide 20: Strategy and Outlook
Section 5 Strategy and Outlook 19
Slide 21: Strategic Priorities
Strategic Priorities Build on core competitive strengths and leverage scale to maximize long-term shareholder returns Objective: Sustained Growth and Profitability Upstream Downstream • Optimise value throughout the chain supported • To become the world largest oil palm by prudent risk management pl
Slide 22: Downstream Value Chain Optimisation
Downstream Value Chain Optimisation Capitalise on our unique advantage of having own large CPO production and close access to third party plantations … CANADA UK US EU NETHERLAND East GERMANY Asia TURKEY South MiddlePAKISTAN Asia EGYPTEast Africa 5 6 4 1 0 9 1 CPO input 1 Trade flows 1 8 2 … to grow
Slide 23: Downstream Value Chain Optimisation
Downstream Value Chain Optimisation Commercially manage our plantation output and downstream assets to capitalise on value chain optimisation opportunities Sourcing of Product Sales and raw materials Processing customisation distribution • Strategic locations Efficient logistics Margin optimisation
Slide 24: Growth Strategy and Outlook
Growth Strategy and Outlook Growth Strategy • Expanding palm oil plantations by 25,000-30,000 hectares in 2013 through organic growth and acquisition • Building milling capacity in line with the growth in fruits production • Constructing additional downstream processing capacity in strategic locatio
Slide 25: Appendix
Agar ZF agribusiness and food Section 6 Appendix
Slide 26: Revenue Details
Revenue Details YTD Sep 2013 revenue of US$4.7 billion mainly from CPO and refined palm oil based products By Product By Country Soybean 4% Others 5% Soybean Oil 3% Indonesia Soybean Meal Local CPO 8% 11% 38% China Local Branded 20% Products 7% Unbranded Indonesia Refined Palm Export Products 69% 35
Slide 27: Age Profile
Age Profile GAR’s long-term growth is supported by favourable age profile of planted area underpinned by large immature and young plantations Immature Young Prime Old 1 Old 2 Total (in ha) (0-3 years) (4-6 years) (7-18 years) (19-25 years) (>25 years) 30 September 2013 Nucleus 28,875 69,494 173,434
Slide 28: Contact Us
Contact Us If you need further information, please contact: Golden Agri-Resources Ltd c/o 108 Pasir Panjang Road #06-00 Golden Agri Plaza Singapore 118535 Telephone : +65 65900800 Facsimile : +65 65900887 www.goldenagri.com.sg Contact Person : Richard Fung (richard@goldenagri.com.sg) 27
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